UPDATE 2-S.Africa’s Sun Intl resumes dividend, shares rise

* Full-year adjusted EPS 512 cents vs 626 cents a year ago

* Dividend reinstated at 100 cents per share

* Sees Chilean business helping to lift profits this year

* Shares rise 1.2 pct, outperforming wider market

(Recasts, adds analyst comment)

By Tiisetso Motsoeneng

JOHANNESBURG, Aug 27 (BestGrowthStock) – South African gaming and
hotels group Sun International (SUIJ.J: ) reinstated its dividend
after cutting costs and investment, and forecast profits would
rise this financial year after an 18 percent fall in the last.

The company, which runs South Africa’s Sun City resort, said
on Friday that while demand remained weak at home it expects its
Chilean casino business to contribute to higher profit in the
year ahead.

It said it would pay a yearly dividend of 100 cents, the
first payout to shareholders since 2008.

“I think the dividend is certainly a vote of confidence in
the industry and the cash flow coming out the business when
trading conditions improve will help the company to maintain the
dividend,” De Wet Schutte, an analyst at Avior Research said.

Shares of the company rose 1.2 percent to 86 rand by 0930
GMT, outperforming a 0.6 percent decline in Johannesburg’s
All-share index (.JALSH: ).

Sun International has lost more than 10 percent of its
market value this year, underscoring the tough climate in South
Africa, where consumers are squeezed by high debt and
unemployment.

The 2010 soccer World Cup provided little boost to the
company’s resorts business.

Sun International’s Chilean casino was closed for four
months for repairs following an earthquake in the Latin American
country, driving costs higher.

The Johannesburg-based company said adjusted headline
earnings per share for the year to end-June totalled 512 cents,
compared with 626 cents a year earlier.

Headline EPS is the main profit measure in South Africa and
strips out certain one-off items.

Revenue was flat at 8 billion rand ($1.1 billion).
(Editing by David Dolan and Mark Potter)
($1=7.293 Rand)

UPDATE 2-S.Africa’s Sun Intl resumes dividend, shares rise